Customs Management and Leadership. 4th Edition MODULE 4: Change management in customs administrations
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Customs Management and Leadership. 4th Edition
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Course author: Interamerican Development Bank (IDB) (www.iadb.org), through his Integration and Trade Sector (INT). Course coordinator: Interamerican Development Bank (IDB) (www.iadb.org), through his Integration and Trade Sector (INT), the Institute for the Integration of Latin America and the Caribbean (INTAL), the Inter-American Institute for Economic and Social Development (INDES) (www.indes.org), the World Customs Organization (WCO) (www.wcoomd.org) and the General Secretariat of Central American Integration (SG-SICA) (http://www.sica.int/) Module author: John Fonseca Ordóñez. General Manager in the Customs International Trade Degree Programme, Costa Rica University.
administration
and
Pedagogical and edition coordination: The Inter-American Institute for Economic and Social Development (INDES) (www.indes.org) in collaboration with Fundación Centro de Educación a Distancia para el Desarrollo Económico y Tecnológico (CEDDET) (www.ceddet.org)
4th Edition 2016
This document cannot be reproduced, in whole or in part, by any electronic or mechanical means, including photocopy or any recording process. Its information cannot be stored or recovered by any systems whatsoever without the due written authorization from the IDB. Any request for partial or total reproduction must be informed to: BIDINDES@iadb.org These materials have been revised in light of the ministerial decisions taken in the framework of the 9th World Trade Organization Ministerial Conference held in Bali, Indonesia, in December 2013. The adjustments were made in order to reflect a higher alignment between the course topics and the priorities identified in Bali’s Ministerial Declaration and decisions, where all IDB members participated. Bali Ministerial Declaration and decisions 2
Customs Management and Leadership. 4th Edition
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Table of contents
Table of contents ........................................................................ 3 Index of figures .......................................................................... 5 Index of tables ........................................................................... 7 Glossary .................................................................................... 8 Presentation .............................................................................. 9 Aim of the Module ...................................................................... 9 Learning oriented questions ....................................................... 10 Unit I. Generalities ................................................................... 11 Learning objectives ................................................................ 11 I.1. Introduction .................................................................... 11 I.2. Basic Concepts ................................................................. 12 I.3. Forces that Originate or Move Change................................. 18 I.4. Principles of Change ......................................................... 21 I.5. The Change Curve ............................................................ 23 I.6. The Change Process ......................................................... 38 Unit summary .......................................................................... 40 Unit II. Techniques and tools of change management ................... 43 Learning objectives ................................................................ 43 II.1 Introduction .................................................................... 43 II.2. Change in Organizations .................................................. 44 II.3. Kotter Model ................................................................... 50 II.4. Management of Change in Customs ................................... 60 3
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II.5. Cycle of continual improvement ........................................ 68 Unit summary .......................................................................... 71 Unit III. Negotiators of change ................................................... 73 III.1. Introduction .................................................................. 73 III.2. Leadership and management ........................................... 74 III.3. Building the Coalition...................................................... 79 III.4. Emotional Intelligence .................................................... 81 Unit summary .......................................................................... 94 Bibliography ............................................................................ 96
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Index of figures
•
Figure No. 1.1. Forces that can trigger the need for change
•
Figure No. 1.2. Kubler-Ross model
•
Figure No. 1.3. Curve of change scheme
•
Figure No.1.4. Steps for change
•
Figure
No.
2.1.
The
4
dimension
scheme
of
successful
organizational cultures •
Figure No. 2.2. The management of change and commitment people.
•
Figure No. 2.3. 8-step process toward change
•
Figure No. 2.4. Error 1 – Allowing excessive complacency
•
Figure No. 2.5. Error 2 – Not creating a conductor coalition sufficiently powerful
•
Figure No. 2.6. Error 3 – Underestimating the power of a vision
•
Figure No. 2.7 Error 4 – Not communicating the vision intensely
•
Figure No. 2.8. Error 5 – Allowing obstacles to block the vision
•
Figure No. 2.9. Error 6 – Not making a place for short term triumphs
•
Figure No. 2.10. Error 7 – Singing victory too early
•
Figure No. 2.11. Error 8 – Forgetting to root the changes firmly in the culture
•
Figure No. 2.12. Recommendations for permanent changes
•
Figure No. 2.13. Recommended questions before beginning any change process 5
Customs Management and Leadership. 4th Edition
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Module. 4
Figure No. 2.14. Elements of development of strategic thinking in institutions
•
Figure No. 2.15. Deming’s Cycle of Continual Improvement
•
Figure No. 3.1. Characteristics of a good leader in a change process
•
Figure No. 3.2. Stimuli that employees require in their professional career
•
Figure No. 3.3. Multiple intelligences
•
Figure No. 3.4. Emotional competencies
•
Figure No. 3.5. Emotional intelligence
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Index of tables
•
Table No. 1.1. Four-phase model of curve change.
•
Table No. 1.2. Useful recommendations in the curve of change scheme.
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Glossary
GE General Electric PDCA cycle: Plan, Do, Check, Act. VTD: Valley of Transitory Desperation.
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Presentation
The Module is structured in 3 units, plus the present introduction, which approach the following issues in accordance with the specific objectives mentioned in the next section: •
Generalities and Basic Concepts.
•
Change Management Techniques and Tools.
•
Change Negotiators.
Aim of the Module
The general objective of the present module is to present the principal theories of change management to class participants so that they can understand the factors (external and internal) that affect the processes of change, as well as different strategies to persuade, reach consensus and agree. To that end, a content structure has been designed so that, once the theoretical part has been read and the planned activities completed, the participants’ preparation will have been completed in agreement with the following specific objectives: •
To know the principal concepts and theories in matters of change management.
•
To identify the principal techniques to better confront situations of change.
•
To analyze existing tools to facilitate improved handling of situations of change.
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Learning oriented questions By the end of this module, the students will at least be able to respond the same questions: •
What does change management mean inside an organization?
•
Can change affect every aspect of an organization?
•
How is it possible to technically face resistance to change?
•
What kind of tools can we use to support the change management?
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Unit I. Generalities
Learning objectives
•
In this first Unit, we will learn the basic concepts of change. We will learn what forces have been identified as the origin or triggers of the same and how it is possible to graphically understand the evolution of change and the four basic principles that take produce this effect.
I.1. Introduction
According
to
Santiago
Bilinkis,
a
recognized
economist
and
international consultant, "The world will change more in the next 50 years than it has changed in the last 5000.“ The information age, globalization and technological advances have combined
to
generate
more
and
more
accelerated,
therefore
constantly changing, life styles. This is a reality from which no one escapes. There are different ways to confront the situation and the way we usually react when faced with the situation are a part of what we are going to analyze in the course of this document.
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These new and accelerated life styles confront us with a series of challenges, from how to utilize a new application just issued for our iPhone, to how to pay our water and electric bills using the internet. These situations, a reality today, were unthinkable even 10 years ago, and the possibility of taking advantage of such options depends very much on our attitude toward the situation and what we do about it. The customs world is no different; world trade is one of the sectors changing the fastest. The ways of doing business, transporting, insuring, packing, labeling and storing merchandise change day to day. Therefore, the mechanisms customs uses to guarantee the security of the nations of the world must change with the times. Below, the basic concepts we must manage will be presented for a better understanding of the principal theories and management models that apply not only of institutional but personal change as well, if they are not the same thing, because we will soon see that all institutional change begins and has its origin in a change in the people who make up the organization.
I.2. Basic Concepts
In the first place, we will approach the concepts one at a time. An effort will be made later to tie them together and present them as an integrated whole. To introduce our first definition, we could begin with a thought from Albert Einstein:
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“There is only one constant in this universe and that is change.”
Along the same lines, before presenting a formal definition of “change,” I consider it opportune to ask ourselves some questions: •
What would your reaction be if you were to be told that you had received a raise?
•
Most likely you would begin to think, “What am I going to do with the extra money that is going to be coming in every month?
•
What will my new functions be?
•
Who will be on my team?”
A whole spreading fan of new possibilities will open in which you must make decisions. Now, take a minute and think a little. What would your reaction be if they were to tell you that you had been transferred from your office to one far from your home? The case is very different now, you are probably thinking about where you will live, school for the children, among many other things and, again, you will have to seek solutions and make decisions. It is probable, facing the same situation, for different people to have very different perceptions. If you are a person with no family, your perception will probably be different from that of a person who has a family and vice versa.
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From the foregoing, we can understand that changes can be positive and negative, depending on the perceptions and the situation of those involved. What is clear is that both cases imply modifications in the face of a changed situation. Thus change “represents a challenge in the first place, sometimes an implicit criticism of the routine,” in the case of organizations, “something we can shape as an organizational learning process that aspires to modify the attitudes and values of individuals as well as organizational processes and structures” (Zimmermann, 1998). In the same sense and broadening the definition of organizational change a bit more, we can add that it “is a set of transformations that organizations undergo influenced by external forces that could threaten their survival or offer new opportunities, and internal forces that promote generation and adaptation to the changes of the environment. Their practical application also defines the magnitude, relevance, impact and the quality that generates the change itself, in which human resources play a relevant role” (Delgado, Mercedes; Barroso, Gloria. 2007). Changes are not always a personal or institutional decision; change can often be imposed by the environment or comes from inside our being and/or our organization. As an example of external influences, in a personal case we could talk about no smoking laws in public places. In this case an external factor and not necessarily a personal decision causes us to stop smoking in those places. As an institutional example, we can talk about the transnational Kodak case, in which the impossibility of adapting to the new technological changes of digital photography finally forced the company to declare into bankruptcy. 14
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In these same cases, in the personal example first, it could be internal influence that causes a person’s decision not to smoke in public places because he considers it inappropriate. In the case of Kodak, let us suppose that, on the basis of good management the company could have managed to identify the risk and adapt in time to the sector’s technological changes. That would be an example of change due to internal influence. Having a clearer idea of what the concept of change is, personal change as well as organizational change, we will proceed to present some
interesting
information
related
to
the
concept
of
“management.” In this sense, again we would like to set up a question: When you go to the supermarket, do you have a clear idea of what you need, how much time you will take getting it and how much it is going to cost you? I do not think most people could answer this question in the affirmative. Now let us pretend that we are in a difficult economic situation and that we have invited guests into our home, they will arrive in just an hour and we do not have what we need to take care of them. In this situation it is probable that if you pause a second to think about the response to our question, inevitably, you will manage it, in an informal manner, but that is still management. As we have been saying, the environment where we live is extremely unstable. It is changing and complex, so the competencies and the execution of management in our institutions and in our personal lives take on more and more importance.
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In this sense and with the purpose of giving a formal definition, we can say, “Management is concerned with confronting complexity. Its practices and procedures are to a great extent in response to one of the more significant events of the Twentieth Century: the appearance of
large
organizations.
Without
good
management,
complex
enterprises tend to become chaotic as to put even their own existence at risk. Good management contributes a degree of order and consistency
to
such key
dimensions as
the
quality and
profitability of products” (Kotter, 1990). This definition, presented by Kotter in the nineties, has undergone modification and adaptation to the new realities, where management has become indispensable, not only for large organizations, but for all organizations, independent
whatever professionals
their are
size.
Today
applying
the
more
and
more
fundamentals
of
management to operate their businesses even when their institution is made up of a single member, the professional himself. The principles of management can be applied in the home and in our personal life as well. Complementing the aforementioned, management schemes have evolved and in today’s world they allude to such concepts as “postmodern management” based on the “new knowledge paradigm.” In this sense, we must be aware that there has been a change of paradigm from an industrial society to one of knowledge, “which is a framework of thought or a reference scheme to explain and understand certain aspects of reality and to fix the rules for competing among members of a specific discipline, establishing new conditions and suppositions that bring challenges and opportunities with them” (Valdés, 2002).
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Taking advantage of the opportunities referred to the foregoing paragraph is directly linked to the capacity institutions and/or individuals for manage to develop in regard to changes in their environment. All change generates opportunities. One who manages to identify the tendencies of change will basically be in an advantageous situation in relation to his competitors and first on the list to successfully seize the opportunities that come with changes in his environment. For customs, the case is very particular, since the challenge is to identify the manner in which the world (and world trade) is evolving in order to be able to make corresponding adjustments in a timely manner to guarantee the socio-economic stability of nations. This is not an easy task and it is for that reason that the concept of “Change
Management�
and
principles,
techniques
and
tools
associated with Change Management have become so popular. The improvement in the possibilities of dealing in a certain manner with a situation of change and getting the maximum benefit from the opportunities that normally come with change make this model an excellent option not only for institutional management but personal management as well. In the course of this document we will be approaching different themes that allow us, at the end, to have sufficient criteria to understand the concept of “Change Management.�
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I.3. Forces that Originate or Move Change
Previously we mentioned and now we are going to go into a bit more detail about the forces that originate or move change. It must be clear that the factors that could generate change are infinite; below, however, we will try to present the principal ones. Approaching this subject, we are going to try to begin to penetrate a bit more deeply into customs schemes. We will attempt to begin with a question: What do you consider could be causes for a change in the fiscal oversight practices of your own national customs service? This can generate various responses. It could be the case that our risk management area, on the basis of a careful analysis of information, was able to identify a threat that was not originally contemplated and that obliged us to change what was previously defined. Another alternative could be the case of one of the industries in our country denouncing an irregularity and, on the basis of that, there was a change in what we had defined. As noted in the foregoing example, there are different forces that can originate internally or from outside the organization. In the following image we can visualize some of the forces that can trigger
the
need
for
change
internally
or
from
outside
the
organization.
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Figure No. 1.1. Forces that can trigger the need for change Demographic Characteristics Age/Education/Novel ability/Gender/Immigration Technological Processes: Computerization of manufacturing/new systems
External Forces
Market Changes Mergers and acquisitions/Recession National and international competition Social and Political Pressure War/Values/Leadership
Necessity for Change
H.R. Problems-Expectations Unsatisfied needs Lack of satisfaction with work Absenteeism and labor turnover Productivity Participation/suggestions Internal Forces
Behaviors-Management Decisions Leadership conflict Structural reorganization Compensation systems
Source: Prepared by the author
In this sense and more focused on our theme, “As internal forces we can mention
technological
adjustments,
changes of
strategies,
changes of managers, changes of working procedures” (Delgado, Mercedes; Barroso, Gloria. 2007). In general, these changes are in obedience to: •
Unsatisfied needs.
•
Lack of satisfaction with work.
•
Low productivity.
•
Few
possibilities
for
employees
to
participate
in
the
decisions.
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Conflicts in the organization; lack of satisfaction with
•
organization leadership. Lack of satisfaction with the organization’s compensation
•
systems for results. For their part, we can say that outside forces are “those that originate in the environment external to the organization; they could be quality standards, decrees, laws, regulations” (Delgado, Mercedes; Barroso, Gloria. 2007). In general, these changes are in obedience to: •
Demographic characteristics.
•
Technological progress.
•
Market changes.
•
Social and political pressure.
It is important to emphasize the close relationship that exists between external and internal forces, as well as the interdependency created between them, “although in the majority of cases outside forces
exercise
greater
influence
than
those
internal
to
an
organization, the opposite could occur as well. Also, the external forces (in their majority) will be conditioned to some extent by accumulation of the effects of the internal forces of one or various organizations. The difference between these forces is caused by their character, nature, and the origin of the source that generates the change, i.e. its origin and the scope of its expression” (Delgado, Mercedes; Barroso, Gloria. 2007). The management of changes helps us foresee the impact of these forces, control them and even take advantage of them in the best manner.
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On this subject, Kotter refers to two alternatives or types of change, specifically: 1. Occasional change: is normally centered on a specific project or objective. For example, a new engineering process initiative that begins next week and the expectations are to implement it over the next two years. 2. Continual change: is permanent, never stops. Change is not produced just with that big sporadic project. And, the more that we can inculcate the idea of continual change into the very fiber of the organization, with a culture that supports it, together with the relevant abilities, the more expert we will be at the time of managing that continual change. A combination of the two alternative types of change can occur in organizations, but having a continual change scheme locked into our institutions will definitely and significantly improve success with an occasional change.
I.4. Principles of Change
Once we have the forces that originate change clear and the two principal types of change that are submerged in organizations, it is important to know the basic principles of change. According to Melamed, there are four basic principles in a change process:
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1. Minimalist principle: to establish that all transformations essentially occur by taking the smallest of steps in the direction desired, with the object of conquering inertia generated with each step taken. In this scheme, detailed planning is necessary so that all the actions lead us toward the desired situation. Beginning with that planning, the observation and follow-up process is extremely relevant and basically what allows us to identify each achievement attained along the desired path. 2. Radical action: to achieve the objective of directing the course of events toward the desirable situation. This type of action will normally be associated with a strong, powerful individual who has the support and credibility necessary to execute the change or to change the upper ranks of the institution. 3. Pendulum effect: at the same time, bear in mind the fact that a large radical action, if it exceeds a certain level of adequacy, is capable of generating the opposite effect. A poor reading in empowering the change negotiator and his reliability could generate a ricochet effect and affect attainment of the objectives of change. 4. Gradual process: execute change in a gradual and progressive manner, establishing the goals to be attained in a more fluid manner with less trauma and a better chance for success. This is the more recommended model; however, the time it requires is not always available at the moment it should be applied.
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I.5. The Change Curve
As we saw above, the principles of change present us with an extremely complex management panorama. In this sense, it is fundamental to understand that the base of all organizational change begins with its own members. People are undeniably the key factor in the success or failure of a process of change. Achieving the support and participation of the members of the organization is fundamental to attaining the objectives. So we must pay special attention to the human potential of our organization in order to attain our objectives. Human beings are capable of anticipating the future; when life confronts us with a change, it is very probable that our first perception in such case will be concern for the probable loss change can represent (above all if we have not chosen the change). Just as in our personal life, change is not easy at the organizational level. But if we do not change we cannot grow. That being the case, we must ask ourselves, how can we face change more effectively? We will try to respond to this question on the personal and organizational planes, but we cannot lose sight of the fact that, in the real world, the two planes intersect and interact.
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The model of Elizabeth KĂźbler Ross of the stages of grief -based on terminal patients- is and has been applied to the organizational environment. The organization is understood as a living being that reacts to change in the same manner as its members; in this sense it is clearly understood that if the reactions of the individuals that make up the organization are positive, the possibilities of success in the process of change will be notably better than in the case of those reactions being negative. The sum of these individual reactions will define the reaction of the organization as a whole. So, a person who is going to get married -for example- although perhaps he desires this change in his life, will sometimes think he is losing his freedom. If there is a change in the way of doing things in our work, we are probably concerned as to whether we are going be able to work as well with the new system. We are afraid of losing face, prestige, and self-esteem. We are not resisting change, as such, but we resist the possibility of loss. For that reason, the stages that a person or an organization goes through, when something changes in their personal or professional life, often resemble the stages of the grieving process (of course the intensity varies) and knowing those stages gives us a useful "map" to follow the path of change with greater relative serenity. In the scheme we present below we can visualize the process in advance.
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Figure No. 1.2. Kubler-Ross model
Source: https://www.google.com.sv/search?q=kubler+ross+model&tbm=isch&tbo=u&source=univ&sa=X&ei=wr VOUoCYBceo4APxloHwDg&ved=0CEMQsAQ&biw=1252&bih=609&dpr=1#facrc=_&imgdii=_&imgrc=krY6 ejLrZ0H8ZM%3A%3BtklqDo1JcjBjM%3Bhttps%253A%252F%252Fwww.lucidchart.com%252Fdocuments%252Fthumb%252F4 d41e4e1-4754-4c38-8c8119b20ac17bf0%252F0%252F317709%252FNULL%252F690%252FNULL%252FKblerRossmodel.png%3Bhttps%253A%252F%252Fwww.lucidchart.com%252Fcommunity%252Fexamples%252Fv iew%252F4d41e4e1-4754-4c38-8c81-19b20ac17bf0%3B690%3B690
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These stages are: 1. Denial: We assume it is not true that things have changed or they are going to change (the same thing happens in a psychotherapeutic process, facing an insight associated with losing self-esteem, for example, in a process of organizational change, when a group is told that it will be working differently). We deny "the wave" (the change) that is happening or that it is going to happen. It is frequent in organizations that some groups -sometimes the unions, sometimes the middle managers- tend to remain stagnant for a time at this stage. That is, their posture is "Nothing is going to change here." This contrasts with the posture of the upper managers: "We must change" and the operating personnel ("My God, when is this going to change?"). For them, it is the middle managers where -usually, but not always- the greatest resistance to change is found. In this stage we must keep in mind that: •
Denial is a defense mechanism people use to protect themselves, or to preserve the success and comfort of the past.
•
It is a defense against change and the potential breakage change will cause.
•
Denial masks internal confusion.
•
Denial postpones the problem so it becomes something even worse.
•
They hope no initiatives are taken.
•
They act as if nothing will happen.
•
They blame external forces or others for difficulties. 26
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•
They question information that supports or backs change.
•
The most common emotions are indifference and calm.
2. Anger: When reality can no longer be denied, we get angry (with the boss, with the therapist, with God), as a way of dealing with reality it. We blame others for what is happening and we feel that there is no justice ("Why me?"). When this stage occurs in organizations, everything that has to do with providing abundant, frequent and consistent information becomes extremely relevant. If information is not forthcoming, anger leads to the invention of terrible stories and things get worse. The idea to market at this stage is the "relative serenity of change, and not "guaranteed security."
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That is to say, it would not be honest to calm people’s natural anxieties by guaranteeing, for example, that no one will be dismissed. That is something that frequently not even the directors know for certain. It is more realistic to clarify that not changing would really be worse. The truth is, a false sense of security, such as that provided by a commodity to IBM in the 80’s or to Ford at the end of the 70’s, in the sense of that no changes were necessary, guarantees organizational failure
as has been
seen historically. On marketing the "relative serenity of change" is a more realistic option than denying the necessity of the change and guaranteeing false security. I am referring to organizations that truly need change, not to those with voracious, dehumanized directors who would fire any number of personnel for one more cent.
That
often
boomerangs,
as
shown
by
the
famous
“reengineering” when it was applied early on with a shortsighted, voracious mentality. What is important to understand is that the health and good functioning of the organization translates into stability for all its members. Just as the reactions of the institution’s members are reflected in the institution, the stability of the organization is transferred to its members. Transmit the message that in our actions we must make sacrifices to achieve the common good, or at least to benefit the majority. Some elements to keep in mind: •
It is accepted that the old, the “comfortable” and the familiar have vanished and that the future is fearful.
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Module. 4
People understand that their power is limited and that it is not usually known where they are going.
•
They feel they cannot talk about what is really happening to them.
•
The question “Why me?” and “What is going to happen to me?” shows anger towards others and towards the organization.
•
They belittle, disbelieve or doubt decisions made.
•
They get angry.
•
They think change is impossible.
•
They refuse to go along with change or turn silent and passive.
•
The
more
common
emotions
are
anger;
distrust
depression, anxiety, frustration. 3. Negotiation: This is an internal bargaining stage in which, in order to be able to swallow the "bitter medicine" the new situation represents, we complain internally (or outside as well) "if at least” the new situation could be made a bit more benign. ("If they had at least told me some other way,” "I could have taken more time to adapt to it"…).
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When this stage occurs in organizations, people have usually begun to assimilate the change and have begun some attempts to adapt to the new systems. This is a transition period in which change has partially won some supporters although, of course, some collaborators will still be in the denial stage and others in the anger stage. Empathy therefore plays an important role in this internal negotiation phase. HP is an example of this case. In the last crisis the company came to an agreement with its personnel to reduce workdays and to forego salary increases instead of laying off personnel. Elements to consider: •
There is a lot of uncertainty.
•
People begin to think about what they can do, what falls within their zone of influence.
•
People find opportunities to manage change at this stage if they focus positively on a concrete objective.
•
High level of energy (can be excitement or anxiety).
•
They resolve problems and generate ideas.
•
They take risks and try new things.
•
They have problems keeping in focus or on an objective.
•
The
most
common
emotions
include
excitement,
commotion, confusion, exhaustion, energy and optimism.
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4. The Valley of Transitory Desperation (VTD) (Transitory Depression): Reality has now become undeniable. The new working system has arrived to stay and the old system will never come back. We are no longer angry, we have stopped complaining; the transitory phenomenon of feeling empty has hit us; we have no energy or enthusiasm; we are discouraged. At the personal as well as the organizational level we doubt our own competency. Our self-esteem is fragile at this stage. However, if we can “stick it out" and learn what the experience of change means for us (and therapeutic help here, or organizational advice, is important, each in its own context). This stage is a transitory "winter" that strengthens us and makes us grow up. In the organizational context, this is the most difficult stage. It is the equivalent of a psychotherapeutic impasse. The people are clear that the new system has arrived to stay but they still do not manage it totally and they have to deal with frustration. On the other hand, they know they cannot go back to the old system. It is as if they have sailed from a familiar port and are half way to the next one, tired, but with no option of going back to the harbor they left. In various planning and leadership management workshops, some repetitive elements show up at the time of identifying what is needed to make this VTD shorter and less profound and it has been determined that frequently they are the necessities that will determine the difference between the success or failure of the change project. Below I mention the five principal needs:
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a. A recognized, empowered change process leader who is recognized as honest, and who enjoys high credibility. Someone with credibility can be a fundamental factor in convincing the members of the organization to adhere to the change process. b. A reasonably clear vision of how bright the future is. Without feeling a coherent, shared vision, people do not find a sense of purpose in the change. The vision is the criterion that inspires
and
helps
them
at
difficult
moments.
The
organizational vision of change is not formulated at this moment, but it is during this phase that it becomes vital to support the momentum of the change process. c. A sense of positive urgency. There is no time to waste all day in self-pity here. The leader has a great deal to do with strengthening this sense of positive urgency all the time. d. Training for the change and becoming aware of what is happening (feeling that you are not going to be able achieve something, actually believing that you are not going to do it, is different from feeling that way and having someone come along and tell you: "You are going to be successful, it feels as if you weren’t going to make it, but yes, you are going to be able to make it).
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e. Feedback and recognition of what you have achieved: This restores the confidence temporarily lost during this phase of the VTD. The leader has to know when to be assertive and push and when he has to reinforce achievements and recognize not only results but effort. The collapse of the change process usually comes in good measure from leaders who, in this phase, only think about continuing to press on. 5. Acceptance and growth: Finally, once we get out of the transitory depression and arrive at acceptance of change, we begin to test the forces of the new (a new sweetheart, the new working system, a new attitude) and we discover that we have reached a new state of some tranquility and authentic reconciliation with ourselves and that, in the process, we have matured and grown, either personally or organizationally. At this point, the phase arrives in which we have incorporated the new system. Now is the time for it to be institutionalized so that it will last. When no one in the organization notices any longer that we have changed (as has been
demonstrated
important
cultural
in
some
changes,
airlines such
as
that
have
undergone
Continental
Airlines,
Southwest, or the recognized changes of Sears or General Electric) that is the best evidence that the change has been institutionalized. Aspects to consider: •
People begin to have confidence in their ability to be successful in the new environment. 33
Customs Management and Leadership. 4th Edition
•
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Productivity and the sensation of achievement and growth is recovered.
•
The commitment involves accepting the change as the new standard.
•
People feel confident in themselves and under control.
•
They feel responsible for results.
•
In general, they are capable of adapting easily to technical, organizational and functional changes.
•
They know what they are doing and are comfortable with it.
•
Their most common emotions include acceptance, relief, a sensation of realization and pride.
Along those lines, you can visualize the stages incorporated in a fourphase model of curve change in the following table.
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Table No. 1.1. Four-phase model of curve change DENIAL Behavior
COMMITMENT Behavior
Avoid the subject
Sensation of confidence and control
Act as if nothing happened
Are pleased with the change
Do only the routine
Conscious of the change process
Suppress curiosity and exploration
Are involved in the goals
Focus on details and get fussy
Work efficaciously and efficiently
Blame others for difficulties
Feel like part of the results
Question methods and data related to the change
Sense mastery and decrease of stress
RESISTANCE Behavior
EXPLORATION Behavior
Don’t take the initiative
Look for new ways to act and think
Wait for directions
Try to learn
Criticize destructively
Take risks and test new things
Argue against new ideas
Generate ideas in abundance
Talk about past failures
Create a vision of a probable future
Question the abilities of management
Have some ideas about the subject!!!
Don’t want to do anything Source: Elaborated by author
Of course there are other factors; but we will come back to this theme later when we speak of Kotter’s eight stages in the management of organizational change. Independent of the type of change, it will generate emotional reactions and inevitably those emotional reactions will influence the organizational change process. The following image presents some recommendations that could be of utility in the curve of change scheme.
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Table No. 1.2. Useful recommendations in the curve of change scheme NOTICE YOUR DENIAL
RECOGNIZE YOUR COMMITMENT
Look for information Confront reality
Celebrate success Keep the guard up
ACCEPT YOUR RESISTANCE
LEARN THROUGH EXPLORATION
Express your sentiments Initiate the path
Create a vision Look for learning Opportunities
Source: Elaborated by author
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Case: Julia, an excellent staff member of the national customs service, has served her institution for more than 15 years. As part of the process of modernizing the institution, a new computer information system is being implemented (this is something new and unfamiliar for Julia). She thinks her experience is being replaced by computer systems and feels the institution does not value her 15 years of service. Evidently Julia finds herself in the anger phase. She focuses on differences and tries to reconcile her sentiments. In the negotiation phase, Julia will try to understand the modifications the new systems will bring to her day to day work and the adjustments she will have to make and/or what alternatives are open to her. Julia is distracted at work, which makes it feel she is “helped” more, although she recognizes the importance of her work. Now she finds herself in the depression phase, which she will try to get through quickly. If she doesn’t manage to adapt to the new changes, to the institution’s new operations model and enter into the enlightened phase of acceptance, she will begin to plan her departure. Institutions often lose excellent staff personnel unnecessarily. Accompanying its personnel properly during the change processes and understanding their needs can make the process simpler for the institution and for its members as well. If it wants to keep their knowledge upper management must necessarily be informed of the necessities of each one, even though they do not express them directly. Making Julia understand her new role and the importance of her knowledge and experience in operating the new system will help her arrive at the acceptance stage and successfully integrate herself into the process. It is better and cheaper to listen and identify existing difficulties and/or limitations in time.
The following image presents the information that we developed earlier in an integrated manner:
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Figure No. 1.3. Curve of change scheme
Source: Unknown source
I.6. The Change Process
Having all the aspects that we have approached prior to this stage of the document clearly in mind, we can begin to talk about the change process. Change “can be complete or incomplete, total or partial, planned or forced, rapid or slow, in the people, in the structure, in the organization, what obliges the adjustment of behaviors and the conscious sensitization of flexibility on the part of the people intervening in the change process, with the object of minimizing its effects.â€? (PĂŠrez 2004). 38
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According to Davis and others, the change process can be divided into three stages: 1. “Unfreezing the status quo.” In order to dissolve this state of equilibrium, the forces driving toward renovation are increased and the forces accommodated to the status quo are reduced. This stage is associated with the first three states of the change cycle. This is the moment at which we leave our comfortable state to face the new reality. 2. “Movement
toward
the
new
state”
occurs
with
the
incorporation of the changes planned. This is the stage at which the competencies of management and leadership will be fundamental to attaining the objectives. It may be associated with the fourth stage of the Kübler-Ross model. 3. “Refreezing the changes attained.” In order to strengthen this new state, i.e., make the changes introduced permanent, the forces accommodated to the status quo are increased and the
innovating
forces
are
reduced.
The
consolidation
or
incorporation of the change into our organizational culture is fundamental and we can link this to the fifth reaction of the cycle of change. This is the first opportunity that organizations and/or individuals will have to incorporate change management operating model into their organizational schemes and/or cultures as their modus operandi. In the following image, we can visualize the association of the three stages in relation to the 8 stages of organizational change proposed by Kotter; that will be developed later.
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Figure No. 1.4. Steps for change
Steps for Change 1. 2. 3. 4.
Instill a sense of haste – (urgency) Create a conducting coalition Develop a vision and a strategy Communicate the vision of change
5. Empower the employer with the power to undertake actions with a broad scope 6. Generate short term achievements 7. Consolidate wins and generate more changes 8. Root the new focuses in the culture
Unfreezing: Soften the status quo
New Practices
Sow and consolidate
Source: Kotter, 1995
Unit summary
Change “represents in the first place a challenge, sometimes an implied criticism of the routine,” in the case of the organizations, “something we can shape as an organizational learning process that aspires to modify the attitudes and values of individuals as well as organizational processes and structures” (Zimmermann, 1998). For customs the case is very particular, since the challenge is to identify the world and world trade as it evolves in order to be able to make the timely adjustments required to guarantee the socioeconomic stability of the world’s nations.
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Improvement in the possibilities of dealing properly with a situation of change and attaining the maximum benefits from the opportunities that normally come with change make the management model based on change an excellent option not only for institutions but for individuals as well. Change in this sense can be promoted by internal or external forces. In general internal forces are in obedience to: •
Unsatisfied necessities.
•
Dissatisfaction with the work.
•
Low productivity.
•
Few possibilities for employees to participate in decisions.
•
Internal conflicts in the organization; lack of satisfaction with organization leadership.
•
Lack of satisfaction with the compensation systems of the organization’s results.
External forces are normally associated with: •
Demographic characteristics.
•
Technological progress.
•
Changes in the market.
•
Social and political pressure.
People can take different attitudes during the processes of change. Elizabeth Kübler Ross represents this process in five stages and calls it the change curve: 1. Denial. 2. Anger. 3. Negotiation. 41
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4. Transitory depression. 5. Acceptance and growth. According
to
Davis
and
others,
from
the
point
of
view
of
management, the change process can be broken down into three stages: 1. Unfreezing the status quo. 2. Movement toward the new state. 3. Refreezing the changes attained.
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Unit II. Techniques and tools of change management
Learning objectives
•
In this second Unit we are going to focus change inside organizations on understanding, through the Kotter model, the phases or stages that human beings go through when they are subjected to change. Then, we are going to focus on how all this is applicable in a customs organization, in a world that is constantly requiring changes in this field. And finally, how continuous change is an opportunity for improvement.
II.1 Introduction
The pressures that organizations experience to carry out change will only increase over the course of coming decades. The methods that administrators have utilized in an attempt to transform and adapt their institutions to the rhythm of changes in the environment, are changing and evolving in the same way, attempting to satisfy their users’ requirements. In the case of Customs there are big questions on the table. How can Customs adapt to the requirements of a world ever more accelerated and globalized?
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How can we manage to protect our nations, our citizens, flora and fauna without affecting the socio-economic development of our nations? Obviously there are no clear, easy responses. What is certainly clear is that using management tools that allow us to confront these challenges in a more systematic, orderly and strategic manner will significantly improve results and the possibilities of doing our bit in an ever more competitive world.
II.2. Change in Organizations
Knowing that change is inevitable and constant, we have to ask ourselves “Are we prepared for change?â€? Independent of strategic management competencies, an organization would hardly be capable of identifying exactly what is going to happen in the future and how that can affect it. Good management allows us to have an idea and therefore to build projections of what is going to happen and estimates of how this or that can affect our organization. It is a case of reducing the risks and implications of the impact. In that sense, we can say that no one is ever totally prepared for change, (in the same way that no one is ever totally prepared for adolescence, to get married, or have children). I believe that the question is merely another way of asking: • Is customs prepared at this moment to find itself in situations of frequent and permanent change? 44
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• Do our present organizational values support the pressure of frequently needed changes toward better competition? • And above all, do we know which way we have to go? Or, in other words, do we have a clear vision of where we really want to go? And it is here that the concept of organizational culture comes into play. Of the existing schemes about culture there is one that seems particularly
useful
to
respond
to
the
questions
of
foregoing
paragraph. It is the 4 dimension scheme of successful organizational cultures. A strong organizational culture is like a boat that has to have the following 4 solid dimensions: Figure No. 2.1. The 4 dimension scheme of successful organizational cultures
Source: Prepared by the author
1. Vision: This is the splendid goal that inspires everyone, that defines "what is valued and what is not valued" in the organization, what lays out where we are going. Vision describes the port toward the ship is sailing for. Does everybody in the organization know where the ship is going?
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Do we know who our clients are? In the case of customs, do we know who the clients of customs are? Do we have clear the reasons that we do what we do and for whom we do them? If we don’t have an answer to some of these questions, does that mean that neither do we know what our customs duties are, or how and when we should be doing them? There may be many explanations for this situation, but frequently there is a lack of a clear vision and/or the administration is communicating the vision poorly. Each action that we take represents a brick in a great edifice, and if we do not have clear building plans and know the roles and tasks of each worker, the combination of our actions can hardly achieve the results expected. 2. Clear rules (consistency): To put it simply, consistency and the delimitation of tasks is the set of standards, rules, procedures, and rituals that define the "style" in which the organization responds in a particular way to its internal situations. A customs office with high consistency has a defined set of "do’s” and "don’ts." The subject has to be approached with care; if consistency is exaggerated the set of standards no longer adds value, just paper and costs. It becomes a bureaucracy. Does the organization continue to ask for signatures, merely as a custom, so that the signature is always signed, without making any difference to the situation? That is bureaucracy, not consistency. Why? Because it does not add any value to the organization. (In the 90’s Mr. Jack Welch from GE transformed a simple standard with this policy: "To eliminate all the processes that not adding value"). In
principle,
all
customs
services
have
undergone
the
same
evaluations and eliminated all the trade control processes and facilitation programs that do not add value. 46
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Unfortunately, there are still many cases of national customs that are testimony to the excessive quantity of requirements and procedures that add no value whatsoever to the administration, but become an obstacle to trade. Think for a minute: Are all the processes I am involved in working for the national customs service of my country really necessary? Are we hiding under euphemisms such as having a “work mystique” to positively camouflage mountains of useless paperwork, labyrinths, bureaucratic cross purposes and the risky inertia of inefficiency? 3. Participation: Put simply, participation is a measure of the facility with which information and ideas flow through the organization. Have you conversed on some opportunity with your colleagues about the organization’s
direction?
Are
your
supervisor
and
the
upper
management of your institution – and their minds – truly open to everything? Are the meetings in your organization enthusiastic or boring, routine or motivating, effective or a waste of time? Is communication by e-mail effective? Are you really interested in reading all the e-mails and information the institution sends you? Obviously the organization cannot implement all the ideas its members have. The question is if an environment exists that encourages people to want to contribute their ideas or not. Neither is it appropriate to have meetings all the time. And, again, the question is if the organization is perceived to be sufficiently free for its employees, at all levels to be able to contribute to its development. A modern technique utilized with ever more frequency, is one in which all the functionaries of an institution audit its procedures. 47
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Whenever a functionary, whatever his hierarchical rank or area of work, manages to identify an improvement in one of its processes, an evaluating committee examines the proposal and if the proposal is implemented the contributor will be awarded a prize. Many private enterprises have improved their efficiency significantly with this model and this same principle could definitively generate very positive results in the administration of customs. 4. Adaptability: This is the agility with which the organization responds to its external clients and its disposition to change. Adaptability is a measure of the organization’s flexibility. When an organization has high participation and high adaptability, we say that it has a flexible culture and a disposition to change. Do you know who the clients of customs are? In case of the affirmative, do you know what the needs of customs clients are? Do you know how your work affects customs clients? Does your national customs service have the capability of adapting opportunely and adequately to variations in its environment? The response to all these questions can hardly be positive and for precisely this reason the management of change is extremely relevant to customs institutions. We can say that the role of the customs has changed. It is changing. At the present time the subject goes beyond national security or tax collection. Today, more than ever, a nation’s customs organization is a factor in the country’s competitiveness. So customs must guarantee the security of life and the natural environment, collect the taxes that correspond to the characteristics of its respective countries. And it must accomplish the two foregoing duties without affecting their country’s industrial competitiveness, among other things. 48
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In this sense, what we have clear is that our sector is extremely subject to change and that customs requires a process of permanent adjustments. It is always important to bear in mind that adjustments always depend on human potential. An adequate balance between management and leadership will be the best conductors of change in our organizations. It is not easy for the 4 dimensions described to be strong because, to the extent that an organization increases its weight, direction and stability (vision and consistency) its flexibility and disposition to change (its participation and adaptability) begin to decrease almost automatically. Therefore the strategies we propose or analyze for change in our organizations must be oriented to achieve the best balance of these 4 dimensions. Moreover, from the perspective of the human beings who labor in our organizations, we will have to take into account the fact that people will very probably be going through the stages of adaptation specified previously in this document. In the following image we can visualize the principal elements to consider in order to manage change that allows us an adequate compromise with the people.
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Figure No. 2.2. The management of change and commitment people
Source: Unknown source
II.3. Kotter Model
There are many theories as to how “to make” the change. Many of them come from John Kotter, a professor at the Harvard Business School and a very well-known expert on change. Kotter presents his 8-step process toward change in his 1995 book “Leading Change”, from which we present the principal aspects, images and criteria below. In the following image we can visualize each one of the ascending stages that we will proceed to explain later:
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Figure No. 2.3. 8-step process toward change
Source: Kotter 1995
1. Create a sensation of urgency: As the first step it is proposed to “examine the reality of the market or the environment and competency. Identify and debate the crisis, the crisis potentials or principal opportunities.” Figure No. 2.4. Error 1 – Allowing excessive complacency
Source: Kotter 1995
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In order for change to occur, it is necessary for the whole institution to really desire and be committed to it. Although this is extremely complicated, since the people will be passing through the stages of the cycle of change in different ways and some of them will take more time than others to adapt, developing a sense of urgency around the necessity for change in most of the members
of
the
organization
can
help
awaken
the
initial
motivation to achieve movement. This is not simply showing them economic statistics and/or demonstrating the impact of customs on the economies of our countries or talking about the growth of international competition for our industries. It is important to have an honest and convincing dialog about what is happening in the market, how it impacts us and how we impact the market. If many people begin to speak about the change proposed, urgency can be built up and it will feed upon itself. 2. Form a powerful conductor coalition: on this point Kotter says to “Organize a group with sufficient ability to head the forces of change. Animate the group to work as a team.�
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Figure No. 2.5. Error 2 – Not creating a conductor coalition sufficiently powerful
Source: Kotter 1995
Convince people that the change is necessary. This often implies strong leadership and visible support on the part of key people in the organization. Managing the change is not sufficient. It also has to be adequately led. There are leaders of change in the institution. In order to lead the change, it is fundamental to bring a coalition or team of influential people together whose power comes from a variety of sources, including the positions they hold, their status, experience and political importance. Once the "conductor coalition" is formed, it is necessary to work as a team, continually building the urgency and the drive centered on the necessity of the change.
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3. Create a vision: At this stage, what is proposed is to “create a vision that helps direct the forces of change. Develop strategies to reach this vision.” Figure No. 2.6. Error 3 – Underestimating the power of a vision
Source: Kotter 1995
What to do: •
Determine what values are fundamental to the change.
•
Prepare a brief summary that captures "what you see" as the future of the organization.
•
Create a strategy to execute that vision.
•
Be sure that your coalition can describe the vision in 5 minutes or less.
•
Practice your "declaration of the vision" often.
The existence of a vision is fundamental; you cannot build a bridge if you cannot clearly see where it is going.
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4. Communicate the vision: When stage three is completed, it is recommended to “use all possible vehicles to communicate this new vision and the strategies. Teach new behaviors with the example of the coalition leadership.” Figure No. 2.7 Error 4 – Not communicating the vision intensely
Source: Kotter 1995
What is done with the vision after creating it will determine the success of the change process. Information may unearth strong competencies in the enterprise’s daily communications, so we must communicate the vision frequently and forcefully, and include it in everything done. Special meetings are not sufficient to communicate your vision. It is necessary to talk about the vision wherever possible and the vision must be considered daily in making decisions and solving problems. If you keep it fresh in everybody’s mind they will all remember the vision and act in response to it.
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5. Empower
others
Module. 4
to
put
the
vision
in
practice:
The
competencies of leadership will be fundamental at this stage, during which we must attempt to “unmake the obstacles to the change. Change the systems or structures that seriously impede the
vision.
Promote
risk
assumption,
non-traditional
ideas,
activities and actions.� Figure No. 2.8. Error 5 – Allowing obstacles to block the vision
Source: Kotter 1995
In principle if you have gotten to this point in the change process, it is because you have talked about the vision and have gotten people to sign on to it from all levels of the organization. It is important to identify the change negotiators in the organization and take advantage of the impulse that they can contribute to the project. Similarly, it is pertinent to identify whether there is someone resisting the change. Are there processes or structures in the way? Finally, identify the actions that can be taken to eliminate or minimize the impact of obstruction to the process.
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6. Plan to obtain short-term successes: Motivation and credibility are very positive factors positioning the project, “Plan visible improvements in the results. Obtain the improvements. Recognize and reward the employees involved in the improvements.” These are actions that can generate very positive results. Figure No. 2.9. Error 6 – Not making a place for short term triumphs
Source: Kotter 1995
Nothing motivates more than success. Giving the institution and the participants in the change process the taste of victory in the early phase of the change process is very positive. In a short period of time (that could be a month or a year, depending on the change), you must show the attainment of palpable results for your
people.
Otherwise,
critical
and
negative
people
could
sabotage the process. Create short-term goals, not just the long term objective. It is important that you program some palpable objectives to be obtained during the early stages of the project that you are sure you can reach. Don’t always assume the worst.
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7. Consolidate improvements and produce still more changes: Getting quick victories cannot distract us from the final objective. “Take advantage of increased credibility to change the systems, structures and policies not attuned to the vision. Contract, promote and train employees who can put the vision into practice. Strengthen the process with new projects, themes and agents of change.� These are some of the actions that will allow the change in the organization to be internalized and improve the possibilities of making it part of organizational culture. Figure No. 2.10. Error 7 – Singing victory too early
Source: Kotter 1995
Each victory provides the opportunity to build on what came out well and determine what can be improved.
Maintain fresh ideas adding more agents and leaders of change.
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8. Institutionalize new methods: The success of a change process brings a series of opportunities. “Articulate the connections between new behaviors and the success of the enterprise. Develop the
means
to
insure
the
development
of
leadership
and
succession.� Figure No. 2.11. Error 8 – Forgetting to root the changes firmly in the culture
Source: Kotter 1995
Finally, in order to make any change permanent, it must become a part of the nucleus of the organization. The corporate culture often determines what to do, because the values behind of the vision have to be demonstrated in day to day activities. Make continuous efforts to guarantee that the change is visible in all aspects of the organization. This will help give the change a solid place in the culture of the organization. The following image presents some recommendations that we have brought out in this paragraph.
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Figure No. 2.12. Recommendations for permanent changes
Source: Adapted from Kotter, 1995
II.4. Management of Change in Customs
In this theme and in conformity with new tendencies in management matters it is important to begin presenting some concepts. In the first instance, it is pertinent to specify that it is quite normal for change management to be submerged in a strategic management model.
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Such a model is oriented to strategic thinking that “is oriented to providing the manager with the conceptual instruments and practical tools to take action and closely follow what is happening around him, attempting to establish focus, styles and categories that facilitate understanding what is new and the necessity of changing to improve. It is a process that allows the team director time to think about the qualitative aspects of the business and the environment it faces in order to decide on a vision and common strategy to share for the future of the enterprise” (Cendrós 2001). In this sense, development of strategic thinking has become a constant necessity to meet this commitment. “The manager must manage a mountain of technical decision-making tools, but he must also be capable of generating creative ideas and offering a practical path that minimizes the workers’ anguish or fears. He must have a special sense of the proposition that underlies his vision and goals, building change into the organization to make it safe for people to create vision, a place where seeking and being committed to the truth are the norm” (Soto, 2001; Senge, 1992). Shaping the role of ideas identified in a strategic thinking scheme is one of the fundamental elements of being able to put ideas into practice. Identifying the how, when and what with allows the organization to have better possibilities of success in the change process. It is at this point that strategic planning is an extremely useful tool. You “tackle the strategy formulation process, prepare the company’s mission, identify the organization’s opportunities and external threats, define its strengths and weaknesses, establish its long term objectives, generate alternative strategies and choose concrete strategies that will be followed” (David, 1997).
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In conformity with the foregoing statement, we present some questions below that we recommend you ask yourselves before beginning any change process, in this case specifically in customs, as well as some advice on managing change in customs: Figure No. 2.13. Recommended questions before beginning any change process
Source: Prepared by the author
1.
What must be done? An adequate strategic management model must allow us to have clarity of the general aspects occurring not only internally but outside the organization as well. In the case of customs this awareness is very particular, because change in the customsoperating
model
can
affect
economic
sectors
extremely
important to the country. What change managers must have clear is that change detractors can arise not only inside but also outside the organization. It is important to be clear who could affect the proposal to change and how. It is indispensable to take that into consideration at the time of defining what we are going to do.
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2.
Module. 4
How? It is important to understand our organization. This is not the case of a private enterprise where it is much more simple to report some change that will be implemented and where the personnel have no alternative other than adapting or leaving the institution. The customs case is very particular. There is much interest in taking charge and not only internally but also outside of customs groups there are extremely powerful groups with which we must deal. In our organization, imposition is not an alternative. The change process cannot be authoritarian or accelerated. Negotiation based on an adequate reading of the implications of change and of the needs of all the parties will be indispensable to proper negotiations and to set up a schedule of activities that considers the time necessary to adapt and assimilate the modifications proposed. It is important, however, to understand that if we hope to reach a point where all parties are completely ready to change, change will probably never occur. Therefore, understanding necessities is important because the period of transition must be no less than what the parties involved need, and no more either. In the same way, during the negotiations, we must be clear on what the breaking points of our counterpart are and even more important what our breaking points are. At this stage, the recommendation is definitively to utilize the eight stages of the Kotter model that we reviewed before.
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3.
Module. 4
Why? Having clear what the pros and cons are for all parties can help us understand the pertinence and the real possibilities of change. Not all necessary changes are viable. If we manage to identify that the process will definitively not have the support of some powerful sector, we must take that as an invitation to analyze whether the effort could be successful and therefore if it is worthwhile to pursue it. Occasionally we must look for a tradeoff, that is, find something of interest to the power group that we know would not otherwise support the process and try to negotiate their support in exchange for something in which they are interested. At this point the important thing is to understand that the process must incorporate elements of benefit to all the parties involved in the change proposal or occasionally as a parallel promotion instrument. In case of the possibility existing that the project does not pass completely, we must have it clear what parties to the project would be disposed to sacrifice in order to make the project a reality.
4.
Strategic communication Within the strategic management scheme, the fact is that communicating strategically is a key factor to the success of a change process. Communicating pertinent information, at the opportune moment, to the correct recipient, via adequate channels, is a task that can be extremely complicated and it must be accomplished in a planned and well thought out manner.
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Not all information must reach all the parties involved in the process. It is important to define which information has to arrive to the middle managers of customs, which to the high command and which to the base organization. In the same way, it is advisable to provide sectors outside the organization only the information that has to do with their specific sector. This is not to say that the process should not be transparent, simply that communicating strategically can be more effective and easy for all parties. Let’s go back to the computer system. Front line personnel in the organization do not want to know about the project’s financial models. What they are interested in is how it changes their tasks and the manner in which they have been carrying them out. Along the same lines, middle managers do not need to know how the means is going to be managed. They probably want to know what their role will be in implementing the system. The high command, though, should have access to almost all information, with the exception of what the general project
leader
considers
must
be
confidential.
The
high
command should focus on the strategic part of the project. In the same way, external sectors will be interested in information that affects them in one way or another. For example, government entities will be interested in what implications the new system will have on their relationship with customs. Public auxiliaries, customs agents, for example, transport companies, depositors and duty free businesses, among others, will be interested in understanding how the new system will change their manner of interacting with customs, etc.
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Continuing with the theme, communicating at the right time is something we must take into consideration. It is not advisable for information to arrive all at once to all parties; it is pertinent to send it in small doses. It is positive to communicate first with the actors we know will be in agreement with the change process, in order for them to be able to speak up in favor of the project at the moment of total diffusion. It is good to begin by communicating the more favorable elements of the process, and to leave a few aces up our sleeve that we can utilize in the negotiation process and be able to offset some not so positive aspects of the project or aspects that we know will be opposed in some sector. When we refer to the correct recipient, we are talking about adequate segmentation. Taking the time to define the strategic process will allow us to break down all the sectors involved and define which information must be sent to which sector, so that the information arrives to the person it must reach and we avoid a lot of confusion. At this point, it is indispensable to understand what sectors are involved in customs management and how they relate to it.
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Having this clear, we can begin to speak of channels. There are senders with whom we can communicate by means of mass communication, others by means of e-mail, others probably merit a formal letter signed by the director general of customs, others whom we may need to invite to a sector and/or private meeting. At this point, it is advisable to define the power dimensions of each sector involved and the possibilities of each sector to positively and/or negatively influence the project and therefore the degree of attention that must be given them at the time of communicating the change. 5.
Role of the process manager and/or the institution All the foregoing elements are directly related to good strategic negotiations. What was mentioned before derives from an adequate list of management competencies that allow us to plan and conceptualize what is necessary to the change process and the leadership competences that allow the motivation and inspiration to execute everything programmed. For this we must take everything this document has explained above into consideration. In the following image we can visualize the different elements to be considered for the development of strategic thinking in institutions:
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Figure No. 2.14. Elements of development of strategic thinking in institutions
Source: Adapted from Kotter, 1995
II.5. Cycle of continual improvement
One of the most utilized models in modern management is the Deming Cycle. This “implies the strategy of continual improvement utilized in quality control systems. It is also is called PDCA cycle, corresponding to the acronym for Plan, Do, Check, Act.” Below we present a brief explanation of each of the stages: 1. Plan: “Establish the objectives and processes necessary to obtain results that agree with the expected result. Taking the expected result as a focus differs from other techniques in that the achievement or the precision of the specification is also part of the improvement” (Deming, 1989). 68
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Steps: •
Identify the process you want to improve.
•
Compile data to deepen your knowledge of the process.
•
Analyze and interpret the data.
•
Establish the improvement objectives.
•
Detail the specifications of the expected results.
•
Define the processes necessary to get those objectives and verify the specifications.
2. Do: “Implement the new processes. On a small scale if possible” (Deming, 1989). 3. Check: “When a previously established period of time has passed, recompile the control data and analyze it, comparing it with the initial objectives and specifications to evaluate whether the improvement has occurred. Later, monitor the implementation and evaluate the execution plan, documenting the conclusions” (Deming, 1989). 4. Act: Once the cycle has been documented and on the basis of the conclusions of the previous step, you may choose from the following options: •
If partial errors have been detected in the previous step, undertake a new PDCA cycle with new improvements.
•
If no relevant errors have been detected, apply modifications of the processes on a larger scale.
•
If
irresolvable
errors
have
been
detected,
abandon
modifications of the processes. This model is very much used because it is quite clear and an excellent source of feedback and/or improvement of the planning (Deming, 1989). 69
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The following image graphically presents the more important aspects of the model. Figure No. 2.15. Deming’s Cycle of Continual Improvement
Source: Unknown source
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Unit summary
Independently
of
strategic
management
competencies,
an
organization will hardly be capable of identifying exactly what is going to happen in the future and how that can affect it. Good management allows us to have an idea and therefore to have projections of what is going to happen and estimates of how it may affect our organization. It is a case reducing the risks and implications of the impact of future events. The 4 dimensions of successful organizational cultures can help us improve the possibilities: •
Vision.
•
Clear rules (consistency).
•
Participation.
•
Adaptability.
Keeping the 4 dimensions strong is not easy, because as an organization increases its weight, management and stability (vision and consistency), it almost automatically begins to decrease its flexibility and disposition to change (participation and adaptability). Another method to consider that can be of great utility are Kotter’s 8 steps to adequate change management: 1. Create a sensation of urgency. 2. Form a powerful conductor coalition. 3. Create a vision. 4. Communicate the vision.
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5. Empower others to put the vision in practice. 6. Plan to obtain short-term successes. 7. Consolidate improvements and produce still more changes. 8. Institutionalize new methods. This model must be accompanied by adequate strategic planning. Identifying the how, when and what allows the organization to have better success possibilities in the change process. It is at this point that strategic planning is an extremely useful tool, therefore “Tackle the process of formulating strategy, preparing enterprise’s mission, identify the organization’s opportunities and external threats, define its strengths and weaknesses, establish long term objectives, generate alternative strategies and choose concrete strategies that will be followed” (David, 1997). It is recommended that the negotiator planning customs change identify: 1. What must be done? 2. How? 3. Why? 4. Communicate it adequately. 5. Understand his role in the process. The Deming Circle is one of the most utilized models in modern management. It “implies the strategy of continual improvement utilized in quality control systems. It is also is called PDCA cycle, corresponding to the acronym for Plan, Do, Check, Act.”
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Unit III. Negotiators of change Learning objectives
•
In this third and last Unit, we will learn about the relationship between change and a good leader to carry it out and to intervene in any situation that may arise in the process, how to get the parties involved and how emotional intelligence plays an important role in a change process which, although it implies breaking paradigms, can become a source of motivation.
III.1. Introduction
It is indispensable to understand that there is strength in unity. There is no leader or strategic negotiator capable of carrying out a successful change process without collaboration. An adequate change process will have the strong participation of institutional leaders who support the general leader throughout the entire process.
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III.2. Leadership and management
As we saw in the last chapter, modern management models are very much linked to leadership competency. A manager is not always a leader and a leader is not always a negotiator. It is clear that the ideal is for our organization’s management to have both, but as we have said, that is not always the case. In this line of ideas, “leadership, in consequence, is no more than the activity or process of influencing people so that they voluntarily undertake to achieve the group’s objectives. In order to accomplish that it is necessary to conceive a vision of what the organization must be and generate the strategies necessary to carry it out by means of a cooperative coalition of highly motivated human resources with the leadership leading the change” (Kotter, 1990). The change process is generated by a stimulus from the context where the organization realizes its activities. Leadership is one of the factors of success in the change process. As we saw, people will react in accordance with their individual situations, based upon their past experiences and on the abilities and characteristics of the person who conducts the change. The following question was discussed on the basis of the experiences of each of the colleagues involved in a series of events around the world, exchanging ideas and utilizing brainstorming techniques: What characteristics must a good leader have in a change process? The following are some of the elements that came up most frequently: 74
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Figure No. 3.1. Characteristics of a good leader in a change process
Source: Prepared by the author
1. Motivating,
aligning
personal
objectives
and
the
organization’s group objectives. A good leader must obtain results that offer benefits and generate value for the organization, but without setting aside the personal and professional objectives of each one of the employees. Aligning the two objectives is one of the principal objectives of the leader of change process. 2. Sharing successes and failures. Friendship is said to rule in good times but you know who your friends are in bad times. A good leader must share successes with his team, and failures as well. This last is not limited to merely defining responsibilities for the action. It means getting to the root of errors committed and discussing alternatives to improve performance.
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Evaluation of change management and follow up on change management performance are indispensable elements, not only to identify areas for improvement, but the achievements reached in the process as well. In both cases it is an excellent exercise for the entire work team to share. 3. Offering recognition to the employee. One of the 3 stimuli that employees require in their professional career is proper recognition of the tasks accomplished. The other two factors are motivation and economic rewards. The triangle we attach indicates this idea: a work environment must meet 2 of these 3 factors for the employee to be able to meet the challenges and changes his working career imposes on him. The processes of change can have difficult moments in which worker motivation will be a fundamental element. Figure No. 3.2. Stimuli that employees require in their professional career
Source: Prepared by the author
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4. Capacity to listen. Mother Nature gave us two ears and one mouth. The possibility of arranging time to listen proactively to our employees lets us know the true causes and limitations, the why’s of the fears or rejection of changes. A command-and-control scheme does not allow us to listen in situations that can inform us of the actual issues behind the reasons the change is not culturally accepted. 5. Introduce challenges, not utopias. Ideas that do not materialize are simply dreams. Ideas not built on concrete, attainable actions erode motivation. Rooting your change process in unattainable objectives demoralizes your followers. The perception is that the change proposed will not arrive in the end. A second barrier is added to prejudice against change in itself. The leader must plan a change process that provides measurable, attainable goals that each one of the members of the organization can recognize. In the course of time, attaining planned goals will demonstrate that the final objective is approaching. Change is no longer a traumatic process in itself. Change has become a mere matter of compliance with stages that generate motivation by “being part of the project.� 6. Passion in what you do. The leader transmits passion. Sometimes the real knowledge he uses to lead the change process is not the principal consideration in leadership. A sure, impassioned leader with a vision that we are implementing a process necessary to the organization, to each one of its members and to the leader himself, generates an urge to
participate.
It
contributes
credibility
to
what
is
being
accomplished. 77
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7. Say and do based on principles and values. The link between what a leader says and what he does contributes to the generation of confidence. Confidence sustained over time is based on complying with and aligning principles and values, the two
trademarks
of
effective
actions
that
identify
the
communications the leader issues every day. In this case it is an easy to praise with an example: We cannot ask our subordinate personnel to do what we ourselves would not be ready to do. 8. Provide security. The leader cannot doubt. He does not have all the information, but he has already analyzed various alternatives. Contingent events are not a crisis in the development of a change process, but part of the constant planning the leader does. Team members see that consistency, his lack of fear of unpredictable events and the security of his decisions. 9. Make
decisions
in
situations
that
are
sometimes
incoherent. Complementing the foregoing point, in situations where decisions must be made, in particular the decisions that require a cultural change, conditions are often incoherent in the context present. The conditions are not understood by all the members of the organization. A reduced group of people are in possession of the greater part of the information, and the cost of transmitting this information to the entire organization is often more costly than making a decision and putting it in practice without waiting for the total consent of all those involved. The leader of the change must have the flexibility to make these decisions and listen to the resulting concerns. 78
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They must be communicated strategically by the means and at the time pertinent depending on who the recipient of the information is. 10. Know how to delegate. The consolidation of all the information about the process, the security of the objectives and results sought, and the passion in the leader’s actions sometimes means that their personality does not allow them to delegate activities. They feel that others cannot guide the tasks in the same manner that the leader could. Large changes, however, cannot be accomplished using only two hands; that is a concrete fact. Division and delegation of labor is just as important as monitoring and coordinating it. That is one of the qualities that leaders (managers) can accomplish. The delegation of tasks and the recognition of work accomplished.
III.3. Building the Coalition
As we have mentioned, successful change process is not only achieved by a single leader. For that reason the general leader of the process must have the courage to identify other leaders and agents of change. Once a team to work for change is made up, the leader, in coordination and commitment with the conducting coalition, will determine strategies, alignments and policies to be adopted for the change. The team helps the leader to identify the abilities and qualities of his collaborators to promote and generate a propitious environment for developing their potentialities and utilizing and translating their potential into well-defined actions.
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We must take the reaction of the entire organization into account. So long as the collaborators and leaders are not convinced of the direction, change or transformation that is to be expected, as well as the “why” and “what for” of the change, we will have serious problems. The fact is, there is a natural reaction to change because the majority has fear of learning new things, tasks, actions, attitudes, etc. Because of their adult experiences and the maturity of years, they react in a natural manner when faced with the threat of the unknown, novelty, and challenge. It is here that the leaders of the conducting coalition guide, teach, motivate, sensitize and finally empower their collaborators, slowly, to assure them that, bit by bit and naturally, the actions and strategies proposed are being accomplished. The greatest challenge at this stage is CONGRUENCY and the EXAMPLE of the leaders or directors. "The Leader of the Change" emphasizes the critical necessity of leadership to ensure that change is produced. It provides indirect experiences and positive models that leaders can emulate.
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III.4. Emotional Intelligence
We will begin this theme referring to motivation, which is probably the principal element of emotional intelligence. In this sense, “Given that change is the function of leadership, the capacity to generate highly stimulated behavior is important in order to confront the inevitable barriers to change. As well as fixing orientation, it identifies an appropriate party to advance and efficacious alignment of interests causes people to advance for him; successful motivation ensures that the followers will have the energy necessary to overcome the obstacles” (Kotter, 1990). Specifically, we can say that the term Emotional Intelligence refers to the human capacity to feel, understand, control and modify emotional states in one self and in others. Emotional intelligence is not suffocating the emotions, but directing and balancing them. Although current, the concept of Emotional intelligence has, in our opinion, a clear precursor in the Social Intelligence concept of psychologist Edward Thorndike (1920), who defined it as "the ability to understand and direct men and women, boys and girls and act wisely in human relations." According to Thorndike, in addition to social intelligence, there are two other types of intelligence as well: abstract intelligence – the ability to manage ideas – and mechanical – the ability to understand and manage objects.
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The “multiple intelligences” theory of Dr. Howard Gardner of the University of Harvard constitutes an illustrious close antecedent of Emotional
intelligence.
Dr.
Gardner
("Frames
of
Mind"
1983)
postulates that people have 7 types of intelligence relating us to the world. In broad strokes, these intelligences are: •
Linguistic Intelligence: Is the intelligence related to our verbal capacity, with language and words.
•
Logical Intelligence: Has to do with the development of abstract thought, with precision and organization by means of guidelines or sequences.
•
Musical Intelligence: Is directly related to musical abilities and rhythms.
•
Visual Intelligence - Spatial: The capacity to integrate elements, perceive and order them in space, and to be able to establish metaphoric relationships between them.
•
Kinesthetic Intelligence: Has to do with everything related to movement, of the body and of objects, and reflexes.
•
Interpersonal
Intelligence:
Implies
the
capacity
of
establishing relationships with other people. •
Intrapersonal Intelligence: Refers to the knowledge of oneself and all the related processes such as self-confidence and self-motivation.
The image below illustrates these aspects:
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Figure No. 3.3. Multiple intelligences
Source: H. Gardner, 1983
This theory introduced two types of intelligences very closely related with social competence, and emotional competence, to certain point: Interpersonal Intelligence and Intrapersonal Intelligence. Gardner defined them both as follows: "Interpersonal Intelligence is constructed on the basis of a nuclear capacity to feel distinctions among feelings, in particular, contrast in one’s states of energy, temperaments, motivation and intentions. In more advanced ways, this intelligence allows an able adult to read the intensions and desires of other people, although those intensions and desires may be hidden... ". Gardner defined Intrapersonal Intelligence as "the knowledge of another person’s aspects: access to emotional life itself, to the whole range of sentiments, the capacity to discriminate between emotions and finally to name them and use them as a means of interpreting and orienting your own conduct...". 83
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It was only in 1990, that two American psychologists, Dr. Peter Salovey and Dr. John Mayer, coined a term destined to unimaginable future fame. That term is “emotional intelligence.” Today, almost ten years after that “presentation to society,” few people in the cultural, academic or business world are ignorant of the term or its significance. And this is due, fundamentally, to the work of Daniel Goleman, New York Times researcher and journalist, who brought the theme to the center of the world’s attention with his work “The Emotional intelligence” (1995). The new concept, thoroughly researched in this work and in others published with vertiginous rapidity, erupted with uncommon vigor and staggered the established categories attempting to interpret human conduct (and therefore the sciences) that for centuries have been dedicated to get to the bottom of it: They are called Psychology, Education, Sociology, Anthropology, and others. Dr. Daniel Goleman went further and specified 5 practical abilities in the Emotional intelligence theme: self-awareness, self-regulation, motivation, empathy and social skills. In turn the 5 abilities were subdivided into different competencies. 1. Self-Awareness: Implies recognizing one’s own inner world, resources and intuition. The emotional competencies that depend on self-awareness are: •
Emotional consciousness: to identify your own emotions and the effects they can have.
•
Correct self-evaluation: to know your own strengths and limits.
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•
Module. 4
Self-confidence: a strong sense of your own value and capability.
2. Self-Regulation: Refers to managing your own inner world, impulses and resources. The emotional competencies that depend on self-regulation are: •
Self-control: keeping watch over disturbing emotions and impulses.
•
Reliability: maintaining adequate standards of honesty and integrity.
•
Conscience: assuming responsibilities for your own work performance.
•
Adaptability: flexibility in the management of situations of change.
•
Innovation: feeling comfortable with new information, new ideas and new situations.
3. Motivation: Refers to the emotional tendencies that guide or facilitate compliance with established goals. The emotional competencies that depend on motivation are: •
Impulse to achieve: effort to improve or reach a standard of work excellence.
•
Commitment: signing up for the goals of the group or organization.
•
Initiative: disposition to react to opportunities.
•
Optimism: persistence in pursuing objectives, in spite of obstacles and setbacks that may appear.
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4. Empathy: Implies being conscious of the sentiments, needs and concerns of others. The emotional competencies that depend on empathy are: •
Comprehension of others: noticing the sentiments and perspectives of colleagues at work.
•
Developing others: being informed of the developmental needs of others and strengthening their abilities.
•
Service oriented: anticipating, recognizing and satisfying the client’s real needs.
•
Empowering diversity: cultivating work opportunities utilizing different types of people.
•
Political
consciousness:
being
capable
of
reading
the
emotional currents of the group, including the strength of the relationships between its members. 5. Social Skills: Implies being an expert at inducing desired responses in others. This objective depends on the following emotional capacities: •
Influence: inventing effective persuasion tactics.
•
Communication: knowing how to listen with an open mind and how to prepare a convincing message.
•
Conflict management: knowing how to negotiate and resolve disagreements that come up in the working team.
•
Leadership: capacity to inspire and guide individuals and the group as a whole.
•
Catalyst of change: initiates or administers new situations.
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•
Tie
builder:
Module. 4
feeds
and
strengthens
interpersonal
relationships in the group. •
Collaboration and cooperation: works with others to reach shared goals.
•
Teamwork capacities: capable of creating synergy to pursue collective goals.
The following illustration shows the information presented above in a more synthesized manner. Figure No. 3.4. Emotional competencies
Source: Unknown source
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The following is an example that helps us to more clearly understand the concept of emotional intelligence: “In contrast to the intellectual coefficient, a large part of which is genetic – changes very little from childhood – the abilities of emotional intelligence can be learned at any age”. However, it is not easy. Developing your emotional intelligence involves practice and commitment. But the benefits make it worth the investment. Consider the case of the director of marketing of a global food enterprise division. Jack, as I will call him, was an exemplary classic leader: with a great deal of energy, always forcing himself to find better ways to do things, and much too anxious to intervene and take charge when someone didn’t seem to be meeting a deadline. Even worse, Jack was inclined to jump all over anyone who didn’t appear to meet his standards. If a person deviated a little from the way Jack thought was the best way to do the work Jack would lose his head. Jack’s leadership style had a predictably disastrous impact on the working climate and business results. After two years of stagnated performance, Jack’s boss “suggested” that he look for a mentor. Jack didn’t like the idea at all but seeing that his job was dangling by a thread, he had to accept. The instructor, an expert in teaching people how to increase their emotional intelligence, began by putting Jack through a 360 degree evaluation. A diagnosis of this type is essential to improve emotional intelligence because those who most need help usually have blind spots.
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In fact, our study has found that the highest performing leaders overestimate their strengths in at least one emotional intelligence ability, while poor performers overvalue themselves in four or more emotional intelligence abilities. Jack was not so far off, but he did evaluate himself as more brilliant than his subordinates, who gave him especially low grades in self-control and empathy. Initially, Jack had problems in accepting the data the feedback gave him. But when his instructor showed him that those weaknesses were linked to his inability to demonstrate leadership styles that depend on those
competencies
–
especially
the
orienting,
affiliative
and
formative styles – Jack knew that he had to improve. To make that connection is essential. The reason: improving emotional intelligence is not accomplished during a weekend or a seminar; it requires diligent practice at work, for several months. If people do not see the value of the change, they will not make that effort. Once Jack focused on the areas to improve, he and his mentor worked out a plan to transform his daily work into a learning laboratory. Jack discovered that he was empathetic when things were calm, but in a crisis, he became rude with others. That impaired his ability to listen to what they were telling him, precisely at the time that he needed to listen the most. The plan required him to focus on his behavior during difficult situations. As soon as he felt himself tensing up, he would immediately stop, let the other talk, and then pose clarifying questions. The point was not to act in a hostile manner when he was under pressure. Change did not come easily, but with practice, Jack learned to stop his explosions of bad temper and enter into a dialog instead of starting a fight. Although he did not always agree with them, at least he gave people the opportunity of explain their point of view. 89
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At the same time, Jack also practiced giving his subordinates more positive direct feedback, reminding them how their work contributed to the mission of the group. Jack would meet with his mentor every week or two to review his progress and obtain advice about specific problems. For example, Jack would occasionally slide back into practicing his exemplary style, firing people, taking over other people’s work and exploding in anger. Although he might repent. He and his mentor would dissect those relapses to find out what had triggered them. Such “relapse prevention” measures inoculate people against future relapses and avoid leaders giving up. In a six-month period, Jack made real progress. His own notes showed that he had reduced the quantity of his explosions from once or twice a day, at the beginning, to only once or twice a month. The climate improved measurably and the division figures began to climb slowly. Why
does
it
take
months
to
improve
emotional
intelligence
competency instead of a few days? Because it is not just the neocortex involved, but the emotional centers of the cerebrum as well. The neocortex, the thinking brain that learns technical and purely cognitive abilities, gets its knowledge very rapidly, but the emotional brain is not like that. In order to master a new behavior, the emotional centers require repetition and practice. So, improving your emotional intelligence is similar to a change in habits. The cerebral circuits that transport leadership habits of have to forget the old and replace them with the new. The more a behavioral sequence is repeated, the stronger the underlying brain circuits become. At some point in time, the new neuron path becomes the brain’s default option.
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When that occurred, Jack was capable of adapting to the rhythms of the leadership without effort, using styles that functioned for him and for the whole enterprise� (Kotter, 1990). Below and as a complement we can appreciate the image with pertinent information on the subject and some recommendations of utility.
91
Figure No. 3.5. Emotional intelligence
92
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Source: Unknown source
93
Unit summary
The change process is generated by a stimulus from context where the organization carries out its activities; its leadership is one of the factors of its success. The following are some characteristics of a change process leader: 1.
Motivates, aligning personal objectives and the organization’s overall objectives.
2.
Shares successes and failures.
3.
Provides recognition to the employee.
4.
Is capable of listening.
5.
Offers challenges, not utopias.
6.
Has passion in what he does.
7.
Say and do based on principles and values.
8.
Provides security.
9.
Makes decisions in situations that are sometimes incoherent.
10. Knows how to delegate A successful change process is not developed with a single leader and for that reason the general leader of the process must identify other leaders and agents of change. We must take the reaction of the entire organization into account. So long as the collaborators and leaders are not convinced of the direction, change or transformation that is to be expected, as well as of the “why” and “what for” of the change, we will have serious problems. 94
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On this subject, it is important approach the concept of Emotional intelligence, which refers to the human capacity to feel, understand, control and modify emotional states in oneself and in others. Emotional intelligence does not drown the emotions, but directs and balances them. Dr. Daniel Goleman went further and specified 5 practical abilities in the theme of Emotional intelligence, which in turn were subdivided into different competencies. These capacities are: 1. Self-Awareness. 2. Self-Regulation. 3. Motivation. 4. Empathy 5. Social Skills.
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Robbins, S. T. J. (2010). Organizational Behavior. United States: Pearson Education, Inc. Publishing as Prentice Hall.
•
Senge, P. (2006). The fifth discipline: The art and practice of the learning organization. United States.
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Customs Management and Leadership. 4th Edition
•
Module. 4
Senge, P. Kleiner, A., Roberts, Ch., Ross R., Roth G. & Smith B. (1999).
The
Dance
of
Change.
The
Challenges
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Sustaining Momentum in Learning Organizations. United States.
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